GK
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What kind of pricing strategy a firm should normally follow for marketing electronic goods?
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Skimming pricing strategy
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Cost plus pricing strategy
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Penetration pricing strategy
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All of the above
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Explanation:
Detailed explanation-1: -Price skimming examples Electronic products – take the Apple iPhone, for example – often utilize a price skimming strategy during the initial launch period. Then, after competitors launch rival products, i.e., the Samsung Galaxy, the price of the product drops so that the product retains a competitive advantage.
Detailed explanation-2: -A price skimming strategy tries to get the highest possible profit from innovators and early adopters. As the demand from these two consumer segments fills up, the price of the product is reduced, to target more price-sensitive customers such as early majorities and late majorities.
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